How lighthouse companies are pioneering Indonesia's Industry 4.0 and 5.0 revolution A soft system methodology approach

As industries transition toward Industry 5.0, organisations face challenges in balancing automation and digitalisation with human-centric and sustainable principles.Existing Industry 4.0 readiness frameworks primarily emphasise technological adoption while overlooking the role of operational excellence in facilitating structured transformation.This study develops a comprehensive transformation model integrating Soft System Methodology with the INDI 4.0 framework.The proposed model introduces a novel approach by embedding waste elimination, defect reduction, autonomous processes, and total productive maintenance as foundational enablers.This framework establishes a structured sequence for implementation, ensuring that operational excellence serves as a prerequisite for sustainable and adaptive digitalisation.The study highlights the interplay between management commitment, workforce adaptability, and digital integration, offering a pathway toward Industry 5.0.The findings provide actionable insights for policymakers and industry leaders in emerging economies, demonstrating how operational efficiency and human capability development can drive sustainable and socially responsible industrial ecosystems.